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10 July 2020 The Impact of Institutional Distance on Innovation Performance of OFDI Enterprises: Comparison of Coastal and Inland Regions in China
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Abstract

Wang, X. and Qi, Y., 2020. The impact of institutional distance on innovation performance of OFDI Enterprises: Comparison of coastal and inland regions in China. In: Gong, D.; Zhang, M., and Liu, R. (eds.), Advances in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 106, pp. 166–170. Coconut Creek (Florida), ISSN 0749-0208.

Outward Foreign Direct Investment (OFDI) has a certain impact on enterprises' innovation performance through the reverse technology spillover effect. However, China's OFDI is not unevenly distributed, and the OFDI of the coastal economically developed regions has the highest proportion. The large institutional distance between the home country and the host country also affects the effect of OFDI reverse technology spillover on enterprises' innovation performance. This paper uses the moderated multiple regression model to analyze the moderate effects of institutional distance on the relationship between OFDI reverse technology spillover and enterprises' innovation performance, using the data of Shanghai and Shenzhen A-share listed companies over the period of 2008–17. The results show that OFDI reverse technology spillover has a significantly positive effect on innovation performance and that the effect of coastal regions in China is stronger than that of inland regions; formal institutional distance (FID) and informal institutional distance negatively moderate the impact of reverse technology spillover on innovation performance of OFDI enterprises in inland regions, whereas the FID positively moderates the relationship between reverse technology spillover on innovation performance of OFDI enterprises in coastal regions.

©Coastal Education and Research Foundation, Inc. 2020
Xiaotong Wang and Yawei Qi "The Impact of Institutional Distance on Innovation Performance of OFDI Enterprises: Comparison of Coastal and Inland Regions in China," Journal of Coastal Research 106(sp1), 166-170, (10 July 2020). https://doi.org/10.2112/SI106-040.1
Received: 30 November 2019; Accepted: 5 January 2020; Published: 10 July 2020
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